Commentary: is cost transparency necessarily good for consumers?

2015 ◽  
Vol 49 (11/12) ◽  
pp. 1980-1986 ◽  
Author(s):  
Adrian T.H. Kuah ◽  
Vishanth Weerakkody
Keyword(s):  
Unit Cost ◽  
Market Price ◽  
Brand Names ◽  
Critical Perspective ◽  
Cost Information ◽  
Content Type ◽  
Market Transparency ◽  
Cost Transparency ◽  
Making Sense ◽  
Accounting Unit

Purpose – The purpose of this paper is to present a critical viewpoint on the negative aspects of market, price and cost transparencies to consumers in terms of its costs. Design/methodology/approach – It adopts an inter-disciplinary approach from the marketing, economics and accounting literature. The paper explores market transparency in the ever-changing world and uses brand names like Starbucks and iPhone to illuminate instances where imperfect markets are supported by consumers. Findings – Recognizing the role that the Internet plays in promoting price transparency, it espouses how extant information can add costs and risks to the consumer’s value judgement. Finally, the paper advocates that arbitrary judgements existing in cost accounting make it difficult to compare unit cost. This could result in consumers paying extra money to benefit from cost transparency. Practical implications – This paper argues that three main issues may arise in providing unit cost to the consumers. First, transparency entails built-in costs, whether they are in taxes or product prices. Second, in accounting, unit cost information is currently not equitable between businesses. Finally, the paper argues that extra time and effort in making sense of unit cost information lead to questions about the viability of transparent costing. Originality/value – The arguments for transparency have been widely discussed, supported and promoted by many. While negative aspects are known to businesses, few consider the consumer’s perspective. By amalgamating evidence and arguments from different disciplines, this paper lends value, providing a critical perspective where transparent unit cost revelation can be more costly and less viable than what is assumed.

scholarly journals Should consumers request cost transparency?

2015 ◽  
Vol 49 (11/12) ◽  
pp. 1961-1979 ◽  
Author(s):  
Antonis C. Simintiras ◽  
Yogesh K Dwivedi ◽  
Geetanjali Kaushik ◽  
Nripendra P. Rana
Keyword(s):  
Consumer Choice ◽  
Consumer Satisfaction ◽  
Unit Cost ◽  
Price Fairness ◽  
Cost Information ◽  
Content Type ◽  
Cost Transparency ◽  
Body Of Knowledge ◽  
The Cost ◽  
Conceptual Work

Purpose – The purpose of this paper is to propose that consumer choice be guided by price fairness judgements to increase consumer satisfaction and subsequently enhance market efficiency. Consumers en masse lack the information to judge price fairness, thereby causing their ability to influence the economy to be overlooked. Design/methodology/approach – This is an argumentative and conceptual work that aims to initiate a debate on this important yet unexplored issue. The arguments presented in the paper are based on economic and technological considerations. Findings – The measure for enabling a consumer price fairness judgement is unit cost information – the cost incurred by a firm to produce a product and/or service. The benefits and challenges stemming from the availability of unit cost information (i.e. cost transparency) to consumers and companies are presented and the likely impact of cost transparency on addressing information asymmetries between buyers and sellers are discussed. Originality/value – Although a significant body of knowledge exists on issues such as price transparency and how it is driven and enabled by the growth of the Internet, there is little or no evidence of research yet on issues related to cost transparency. The authors believe this work would create a new line of research for scholarly community leading to an impact on practice.

Making sense of cost-consciousness in social work

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Per Nikolaj Bukh ◽  
Karina Skovvang Christensen ◽  
Anne Kirstine Svanholt
Keyword(s):  
Social Work ◽  
Social Services ◽  
Accounting Information ◽  
Professional Culture ◽  
Work Practices ◽  
Cost Information ◽  
Content Type ◽  
Daily Work ◽  
Making Sense ◽  
Context Specific

Purpose This paper aims to explore how the introduction of new accounting information influences the understandings of cost-consciousness. Furthermore, the paper explores how managers use accounting information to shape organizational members’ understanding of changes, and how focusing on cost-consciousness influence professional culture within social services. Design/methodology/approach The paper is based on a case study, drawing on sensemaking as a theoretical lens. Top management, middle management and staff specialists at a medium-sized Danish municipality are interviewed. Findings The paper demonstrates how accounting metaphors can be effective in linking cost information and cost-consciousness to operational decisions in daily work practices. Further, the study elucidates how professionalism may be strengthened based on the use of accounting information. Research limitations/implications The study is context specific, and the role of accounting in professional work varies on the basis of the specific techniques involved. Practical implications The paper shows how managers influence how professionals interpret and use accounting information. It shows how cost-consciousness can be integrated with social work practices to improve service quality. Originality/value The paper contributes to the literature on how accounting information influences social work. To date, only a few papers have focused on how cost-consciousness can be understood in practice and how it influences professional culture. Further, the study expands the limited accounting metaphor research.

Whirling in between the personal and the impersonal

2019 ◽  
Vol 25 (2) ◽  
pp. 257-284
Author(s):  
Armen E. Petrosyan
Keyword(s):  
Organization Theory ◽  
Conceptual Analysis ◽  
Essential Elements ◽  
Organizational Life ◽  
Critical Perspective ◽  
Content Type ◽  
Organizational Goals ◽  
Last Stage ◽  
First Time ◽  
Current Paradigm

Purpose The paper aims to present a systematic conceptual analysis of the problem of organizational goal and to reduce the insights into it provided by the main conceptions taken in their development from one to another, to break out of the ruling paradigm and outline a new solution. Design/methodology/approach The study has been carried out from the historical and critical perspective. Findings The paper discovers the logic of the evolution the approaches to organizational goals have undergone and portrays it in a matrix form in the heart of which is the “zigzag effect”: each posterior stage returns to the essential elements rejected by those preceding it, and the last stage, being diametrically opposite to the first, is, at that, as well as the latter, akin to the intermediate stages. The opportunities afforded by the current paradigm have been exhausted and it seems to run to an impasse. Instead, the author suggests a new frame of orientation: organizational goals are closely interknit with personal, but not reducible to them and bear fundamentally transpersonal character, while the mechanism of involving the preferences of individuals and groups in goal-setting is based on the self-contained interests of the organization they pertain to. Research limitations/implications The findings, conclusions and generalizations obtained can serve for a necessary ground to researchers getting deeper into the essence of what bonds organizational life and activity. Practical implications The material empowers practitioners to comprehend the difficulties of framing cohesive goal and find efficient ways to overcome them. It is of value also to the teachers seeking to present a more exact and elaborate view of teleological foundations of management and organization theory. Originality/value Both the conceptual analysis of the evolution of the approaches to organizational goals and the author’s exposition of its logic and vision of their nature are provided for the first time.

When foreign brands appear local, and local brands appear foreign

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bo Chen
Keyword(s):  
Developing Countries ◽  
Purchase Intention ◽  
Empirical Studies ◽  
Country Of Origin ◽  
Developed Countries ◽  
Brand Names ◽  
Content Type ◽  
Product Categories ◽  
Foreign Brand ◽  
Foreign Brands

PurposeBoth foreign and local companies frequently name their brands in foreign language on the market of developing countries, and some of them choose to disclose the brands' country of origin to consumers. The purpose of this research is to investigate the joint effects between the practices of disclosing the actual country of origin of the brands and the language of the brand names on consumers' purchase intention for foreign brands and local brands in developing countries.Design/methodology/approachThe proposed hypotheses were tested in two studies, namely an experiment and a field experimental survey, with stimuli from two product categories.FindingsThe results of the two empirical studies with Chinese participants consistently demonstrate that revealing the actual country of origin of the brands undermines consumers' purchase intention for local brands that use foreign brand names, but does not impact consumers' purchase intention for foreign brands that use local brand names.Originality/valueThis research first investigates the effects of adapting the brand names into local language of developing countries for brands from developed countries on consumers' purchase intention, which provides new insight into the literature on foreign branding and country of origin effects as well as practical implications for brand managers.

Development land valuation accuracy in China – a case study of Beijing

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mengmeng Dou ◽  
Lesley Anne Hemphill ◽  
Lay Cheng Lim
Keyword(s):  
Market Price ◽  
Market Dynamics ◽  
Industrial Land ◽  
Content Type ◽  
Industrial Market ◽  
Transaction Prices ◽  
Land Valuation ◽  
Market Transaction ◽  
The Government ◽  
Practical Implications

PurposeThe paper aims to quantitatively investigate vacant industrial land valuation accuracy in China, given the importance of the industrial market as an underlying pillar to promote urban growth especially in emerging economies.Design/methodology/approachIn China, the government formulates a Land Benchmark Price (LBP) to serve as a price reference point to sell land rights. To gain an in-depth understanding of the valuation practice by LBP, this paper uses correlation analysis to investigate the varying dynamics between the transaction-based prices and LBP appraisal-based estimates. Furthermore, a margin of error examination investigates the distortion in LBP land appraisals, with an amended LBP presented to improve the accuracy of the current LBP method.FindingsDifferent influencing factors are identified to impact the actual market transaction prices and the LBP construction, leading to a large discrepancy in industrial land appraisals. A systematic problem is recognised that the construction of the LBP follows urban bid curve theory, whereas the land transaction prices do not, demonstrating that an urgent LBP update is needed to capture the market dynamics for industrial market.Practical implicationsThe paper sets out discrepancies in valuation accuracy surrounding the application of the LBP valuation approach in China. This has practical implications for valuers in terms of raising their awareness of the deficiencies in the approach and the pitfalls they need to guard against in their appraisals. It also has implications for developers and investors who rely on valuer appraisals to assess the viability of land purchases; hence, they need to express caution in the appraisal advice sought. Finally, the results demonstrate to the standard setters how they need to modify the LBP equations to better capture market dynamics.Originality/valueThe paper examines valuation accuracy in transitional economies, through valuation differentials between appraised price and the transacted price. The value of the work lies in the analysis of the fundamental differentials between market price and appraised value, which is of importance to investors/developers, practicing valuers, as well as government officials responsible for setting the valuation standards.

Consumer perception vs sensory assessment of the quality of clothes of selected brands available on the Polish market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Renata Salerno-Kochan ◽  
Paweł Turek
Keyword(s):  
Quality Assessment ◽  
Sensory Quality ◽  
Brand Names ◽  
Survey Method ◽  
Quality Level ◽  
Sensory Assessment ◽  
Content Type ◽  
Significant Difference ◽  
Consumer Assessment

PurposeThe aim of the study reported in this article was to establish whether the quality of clothes of a given brand is perceived and assessed by consumers at the same level. An additional purpose was to identify the features that characterize the quality of popular, among Polish young female consumers, clothing brands and to classify them according to their quality level (perceived and assessed).Design/methodology/approachThe article presents two approaches to consumer assessment of the quality of clothes: the survey method, in which the product quality was determined by 320 Polish female young respondents (19–25) based on their own previous experiences and impressions related to a particular clothing brand, and a direct assessment of shirts of selected brands using a sensory quality assessment method, a five-point hedonic scale with the verbal anchor (115 evaluators).FindingsThe research has revealed a significant difference between the perception of selected quality features of brands and the consumer assessment of the products. The perception maps developed based on the PROFIT analysis (PROperty FITting) as well as on cluster analysis provided interesting information about the situation of selected brands and their features in comparison with others and allowed to identify strong and weak features characterizing a given category.Research limitations/implicationsThis study has several limitations. First and foremost, the research results cannot be generalized to all consumers because they encompass the results from one national context and one population of respondents (young females). It should also be noted that the conducted research comprises only the most popular clothing brands available on the Polish market, in particular, the fast fashion segment brands. Furthermore, it would be advisable to carry out a sensory assessment of the quality of other clothing items offered under the brand names investigated.Practical implicationsThis research could be a valuable source of information for clothing company managers, thanks to which they could better manage their brand and its position on the market. When undertaking marketing activities consisting of building positive perceptions about the product, it is important to make sure that the product offers an attractive sensory experience. When real quality deviates from consumer perceptions about the quality, managers should take corrective actions to restore and even improve the brand image in the eyes of the consumer, as well as to ensure the brand and the products offered under it a stable position on the market.Originality/valueBy comparing two approaches to consumer quality assessment, discrepancies between declared and real (sensory) quality of clothes have been identified and the distinctive features that differentiate selected brands regarding their quality level have been indicated.

Scientific literacy, librarians and information literacy in the post-truth era

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Donna Ellen Frederick
Keyword(s):  
Climate Change ◽  
Scientific Literacy ◽  
Information Needs ◽  
Information Science ◽  
Library And Information Science ◽  
Cost Information ◽  
Content Type ◽  
Science Degree ◽  
Self Image ◽  
Professional Self

Purpose The purpose of this paper is to challenge librarians to reconceptualize their professional self-image and practice so that it more closely aligns with the information science discipline that is part of the Masters of Library and Information Science degree. Design/methodology/approach This column is primarily theoretical and philosophical but also draws on the author’s observations of trends and patterns in both librarianship and changes in information needs in recent years. Findings Urgent, high-cost information needs created by COVID-19 and climate change coexist in a reality where technological change has made traditional librarian roles and functions less critical. By developing their information science skills and strengthening their professional identity as information scientists, librarians have the opportunity to address the urgent information needs of the day while remaining highly relevant professionals. Practical implications Librarians will need to strengthen their science-related skills and knowledge and begin to promote themselves as information scientists. Social implications Librarians are in a position to make a meaningful contribution to two of the most pressing challenges of the day, climate change and dealing with the COVID-19 pandemic. Originality/value This paper is relevant to all librarians at any stage of their career. It will help them to reflect on both their skillset and career path and to make any needed adjustments so that they can remain relevant in a volatile and demanding information environment.

The role of market and product category characteristics in local versus foreign language branding in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pablo Farías ◽  
Luis Torres
Keyword(s):  
Latin America ◽  
Foreign Language ◽  
Latin American ◽  
Product Category ◽  
Cultural Dimensions ◽  
Brand Names ◽  
High Tech ◽  
Content Type ◽  
Local Language ◽  
Product Categories

PurposeThis paper explores which market and product category characteristics could influence the use of foreign language brand names (i.e. whether a brand uses a foreign language versus local language brand name) in some of the largest Latin American countries.Design/methodology/approachHypotheses are tested using 880 brands from 39 product categories and nine Latin American markets using a hierarchical logistic regression.FindingsResults revealed that foreign language brand names are more likely to be used in product categories related to local infrastructure, high-tech and global community. In contrast, local language brand names are more likely to be used in product categories associated to subscriptions. Findings also suggest that Hofstede's national cultural dimensions are significant factors. Finally, the results revealed that foreign language brand names are more likely to be used in markets with a low level of foreign language proficiency.Originality/valueThis paper shows the importance of considering market and product category characteristics and their potential influence on local versus foreign language branding in Latin America – an ignored issue in previous research.

Cultural learning process: lesson from microhistory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tianyuan Yu ◽  
Albert J. Mills
Keyword(s):  
Learning Process ◽  
Critical Incident ◽  
Cultural Learning ◽  
Extensive Reading ◽  
Organization Studies ◽  
Content Type ◽  
Knowledge Accumulation ◽  
The Past ◽  
Making Sense ◽  
Historical Accounts

Purpose The purpose of this paper is to examine the cultural learning process (namely, the development, practice and enhancement of cultural intelligence (CQ)) of a successful entrepreneur – Harold Bixby, a Pan American Airways expatriate, as reflected in the memoir of his experiences in China during 1933–1938. Design/methodology/approach This study adopts a microhistory approach as a methodology for studying history and the past while ultimately requiring evaluations informed by the present. This paper first identifies the literature gap on CQ development and the need to study historical accounts of the past in assessing the CQ development process. This study then outlines the four key foci of microhistory as a heuristic for making sense of on-going and past accounts of selected phenomena. Findings This paper finds that specific personality traits (namely, openness to experience and self-efficacy), knowledge accumulation through deep cultural immersion (namely, extensive reading/study, visiting/observation and interacting/conversation), critical incident and metacognition all contributed to Bixby’s CQ development, which was a time-consuming process. Originality/value The study contributes to debates around cultural learning and historical organization studies by providing a rich, qualitative study of CQ assessment and CQ development through microhistory. This study highlights the importance of cognitive CQ and the function of extensive reading/studying in the process of knowledge accumulation. This paper draws attention to critical incidents as an underexplored way of learning tacit knowledge. Moreover, this study suggests metacognitive CQ can be enhanced through meditative and reflexive teaching and research practices. These findings have significant implications for cross-cultural training programs.

scholarly journals Fractional differencing in stock market price and online presence of global tourist corporations

2019 ◽  
Vol 24 (48) ◽  
pp. 194-204 ◽  
Author(s):  
Francisco Flores-Muñoz ◽  
Alberto Javier Báez-García ◽  
Josué Gutiérrez-Barroso
Keyword(s):  
Time Series ◽  
Stock Market ◽  
Market Price ◽  
Google Trends ◽  
Data Sets ◽  
Market Prices ◽  
Content Type ◽  
Search Results ◽  
Online Presence ◽  
Fractional Differencing

Purpose This work aims to explore the behavior of stock market prices according to the autoregressive fractional differencing integrated moving average model. This behavior will be compared with a measure of online presence, search engine results as measured by Google Trends. Design/methodology/approach The study sample is comprised by the companies listed at the STOXX® Global 3000 Travel and Leisure. Google Finance and Yahoo Finance, along with Google Trends, were used, respectively, to obtain the data of stock prices and search results, for a period of five years (October 2012 to October 2017). To guarantee certain comparability between the two data sets, weekly observations were collected, with a total figure of 118 firms, two time series each (price and search results), around 61,000 observations. Findings Relationships between the two data sets are explored, with theoretical implications for the fields of economics, finance and management. Tourist corporations were analyzed owing to their growing economic impact. The estimations are initially consistent with long memory; so, they suggest that both stock market prices and online search trends deserve further exploration for modeling and forecasting. Significant differences owing to country and sector effects are also shown. Originality/value This research contributes in two different ways: it demonstrate the potential of a new tool for the analysis of relevant time series to monitor the behavior of firms and markets, and it suggests several theoretical pathways for further research in the specific topics of asymmetry of information and corporate transparency, proposing pertinent bridges between the two fields.

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